Lipocine (LPCN) 10-Q 8 Nov 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 08, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Registrant Name	Lipocine Inc.
Entity Central Index Key	1,535,955
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	LPCN
Entity Common Stock, Shares Outstanding		18,260,893

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 4,706,639	$ 20,007,659
Marketable investment securities	24,132,453	24,375,168
Accrued interest income	115,205	144,536
Prepaid and other current assets	457,430	350,160
Total current assets	29,411,727	44,877,523
Property and equipment, net of accumulated depreciation of $1,084,474 and $1,060,750, respectively	111,676	75,750
Long-term marketable investment securities	0	400,252
Other assets	30,753	23,753
Total assets	29,554,156	45,377,278
Current liabilities:
Accounts payable	864,951	507,067
Accrued expenses	707,299	2,884,794
Total current liabilities	1,572,250	3,391,861
Total liabilities	1,572,250	3,391,861
Commitments and contingencies (notes 8 and 10)
Stockholders' equity:
Preferred stock, par value $0.0001 per share, 10,000,000 shares authorized; zero issued and outstanding	0	0
Common stock, par value $0.0001 per share, 100,000,000 shares authorized; 18,258,901 and 18,250,456 issued and 18,253,191 and 18,244,746 outstanding	1,826	1,825
Additional paid-in capital	130,471,165	128,502,659
Treasury stock at cost, 5,710 shares	(40,712)	(40,712)
Accumulated other comprehensive income (loss)	122	(32,900)
Accumulated deficit	(102,450,495)	(86,445,455)
Total stockholders' equity	27,981,906	41,985,417
Total liabilities and stockholders' equity	$ 29,554,156	$ 45,377,278

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets [Parenthetical] - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment (in dollars)	$ 1,084,474	$ 1,060,750
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	18,258,901	18,250,456
Common stock, shares outstanding	18,253,191	18,244,746
Treasury Stock, Shares	5,710	5,710

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating expenses:
Research and development	$ 1,506,581	$ 4,733,889	$ 6,747,673	$ 9,814,492
General and administrative	1,394,406	1,700,099	9,038,837	3,871,478
Restructuring costs	385,233	0	385,233	0
Total operating expenses	3,286,220	6,433,988	16,171,743	13,685,970
Operating loss	(3,286,220)	(6,433,988)	(16,171,743)	(13,685,970)
Other income, net	50,735	61,560	167,403	111,490
Loss before income tax expense	(3,235,485)	(6,372,428)	(16,004,340)	(13,574,480)
Income tax expense	0	0	(700)	(200)
Net loss	$ (3,235,485)	$ (6,372,428)	$ (16,005,040)	$ (13,574,680)
Basic loss per share attributable to common stock	$ (0.18)	$ (0.35)	$ (0.88)	$ (0.86)
Weighted average common shares outstanding, basic	18,252,681	18,238,632	18,252,092	15,871,252
Diluted loss per share attributable to common stock	$ (0.18)	$ (0.35)	$ (0.88)	$ (0.86)
Weighted average common shares outstanding, diluted	18,252,681	18,238,632	18,252,092	15,871,252
Comprehensive loss:
Net loss	$ (3,235,485)	$ (6,372,428)	$ (16,005,040)	$ (13,574,680)
Net unrealized gain (loss) on available-for-sale securities	(5,824)	15,887	33,022	5,802
Comprehensive loss	$ (3,241,309)	$ (6,356,541)	$ (15,972,018)	$ (13,568,878)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net loss	$ (16,005,040)	$ (13,574,680)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	23,724	19,566
Stock-based compensation expense	1,934,258	741,842
Accretion of premium on marketable investment securities	209,738	87,838
Changes in operating assets and liabilities:
Accrued interest income	29,331	(146,844)
Prepaid and other current assets	(107,270)	(117,843)
Accounts payable	357,884	150,554
Accrued expenses	(2,177,495)	394,890
Cash used in operating activities	(15,734,870)	(12,444,677)
Cash flows from investing activities:
Purchases of property and equipment	(59,650)	(28,690)
Purchases of marketable investment securities	(19,213,749)	(23,983,464)
Maturities of marketable investment securities	19,680,000	0
Payment of rental deposit	(7,000)	0
Cash provided by (used in) investing activities	399,601	(24,012,154)
Cash flows from financing activities:
Proceeds from stock option exercises	34,249	276,994
Net proceeds from common stock offering	0	32,439,313
Cash provided by financing activities	34,249	32,716,307
Net decrease in cash and cash equivalents	(15,301,020)	(3,740,524)
Cash and cash equivalents at beginning of period	20,007,659	27,666,055
Cash and cash equivalents at end of period	4,706,639	23,925,531
Supplemental disclosure of cash flow information:
Net unrealized gain on available-for-sale securities	33,022	5,802
Cash paid for income taxes	$ 700	$ 200

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Business Description and Basis of Presentation [Text Block]	Basis of Presentation The accompanying unaudited condensed consolidated financial statements included herein have been prepared by Lipocine Inc. (“Lipocine” or the “Company”) in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements are comprised of the financial statements of Lipocine and its subsidiaries collectively referred to as the Company. In management's opinion, the interim financial data presented includes all adjustments (consisting solely of normal recurring items) necessary for fair presentation. All intercompany accounts and transactions have been eliminated. Certain information required by U.S. generally accepted accounting principles has been condensed or omitted in accordance with rules and regulations of the SEC. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for any future period or for the year ending December 31, 2016. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and the notes thereto for the year ended December 31, 2015. The preparation of the unaudited condensed consolidated financial statements requires management to make estimates and assumptions relating to reporting of the assets and liabilities and the disclosure of contingent assets and liabilities to prepare these unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period in conformity with U.S. generally accepted accounting principles. Actual results could differ from these estimates.

Earnings (Loss) per Share

Earnings (Loss) per Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	(2) Earnings (Loss) per Share Basic earnings (loss) per share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Net income (loss) available to common shareholders for the three and nine months ended September 30, 2016 and 2015 was calculated using the two-class method, which is an earnings (loss) allocation method for computing earnings (loss) per share when an entity’s capital structure includes common stock and participating securities. The two-class method determines earnings (losses) per share based on dividends declared on common stock and participating securities (i.e., distributed earnings) and participation rights of participating securities in any undistributed earnings (loss). The application of the two-class method was required since the Company’s unvested restricted stock contains non-forfeitable rights to dividends or dividend equivalents. However, unvested restricted stock grants are not included in computing basic earnings (loss) per share for periods where the Company has losses as these securities are not contractually obligated to share in losses of the Company. Diluted earnings (loss) per share is based on the weighted average number of common shares outstanding plus, where applicable, the additional potential common shares that would have been outstanding related to dilutive options, warrants, unvested restricted stock units and unvested restricted stock to the extent such shares are dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Basic loss per share attributable to common stock: Numerator Net loss $ (3,235,485) $ (6,372,428) $ (16,005,040) $ (13,574,680) Denominator Weighted avg. common shares outstanding 18,252,681 18,238,632 18,252,092 15,871,252 Basic loss per share attributable to common stock $ (0.18) $ (0.35) $ (0.88) $ (0.86) Diluted loss per share attributable to common stock: Numerator Net loss $ (3,235,485) $ (6,372,428) $ (16,005,040) $ (13,574,680) Denominator Weighted avg. common shares outstanding 18,252,681 18,238,632 18,252,092 15,871,252 Diluted loss per share attributable to common stock $ (0.18) $ (0.35) $ (0.88) $ (0.86) September 30, 2016 2015 Stock options 2,132,094 1,701,107 Unvested restricted stock - 4,000 Warrants - 20,467

Marketable Investment Securitie

Marketable Investment Securities	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	(3) Marketable Investment Securities The Company has classified its marketable investment securities as available-for-sale securities. These securities are carried at fair value with unrealized holding gains and losses, net of the related tax effect, included in accumulated other comprehensive loss in stockholders’ equity until realized. Gains and losses on investment security transactions are reported on the specific-identification method. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. December 31, 2015 were as follows: September 30, 2016 Amortized Gross Gross Aggregate Government notes $ 7,313,575 $ 1,815 $ (398) $ 7,314,992 Corporate bonds and notes 16,818,756 1,003 (2,298) 16,817,461 $ 24,132,331 $ 2,818 $ (2,696) $ 24,132,453 December 31, 2015 Amortized Gross Gross Aggregate Government notes $ 802,862 $ - $ (750) $ 802,112 Corporate bonds and notes 24,005,458 594 (32,744) 23,973,308 $ 24,808,320 $ 594 $ (33,494) $ 24,775,420 September 30, 2016 Amortized Aggregate Due within one year $ 24,132,331 $ 24,132,453 There were no sales of marketable investment securities during the three and nine months ended September 30, 2016 and 2015 and therefore no realized gains or losses. Additionally, $11.6 million and zero of marketable investment securities matured during the three months ended September 30, 2016 and 2015, respectively. Also, $ 19.7

Fair Value

Fair Value	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	(4) Fair Value The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: • Level 1 Inputs: Quoted prices for identical instruments in active markets. • Level 2 Inputs: Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuation in which all significant inputs and significant value drivers are observable in active markets. • Level 3 Inputs: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. All of the Company’s financial instruments are valued using quoted prices in active markets or based on other observable inputs. For prepaid and other current assets, accounts payable, and accrued expenses, the carrying amounts approximate fair value because of the short maturity of these instruments. Fair value measurements at reporting date using September 30, Level 1 inputs Level 2 inputs Level 3 inputs Assets: Cash equivalents - money market funds and commercial paper $ 958,486 $ 158,782 $ 799,704 $ - Government notes 7,314,992 7,314,992 - - Corporate bonds and notes 16,817,461 - 16,817,461 - $ 25,090,939 $ 7,473,774 $ 17,617,165 $ - Fair value measurements at reporting date using December 31, Level 1 inputs Level 2 inputs Level 3 inputs Assets: Cash equivalents - money market funds $ 127,905 $ 127,905 $ - $ - Government notes 802,112 802,112 - - Corporate bonds and notes 23,973,308 - 23,973,308 - $ 24,903,325 $ 930,017 $ 23,973,308 $ - The following methods and assumptions were used to determine the fair value of each class of assets and liabilities recorded at fair value in the balance sheets: Cash equivalents: Cash equivalents primarily consist of highly rated money market funds and commercial paper with original maturities to the Company of three months or less, and are purchased daily at par value with specified yield rates. Cash equivalents related to money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices or broker or dealer quotations for similar assets. Cash equivalents related to commercial paper are classified within Level 2 of the fair value hierarchy because they are valued using broker/dealer quotes, bids and offers, benchmark yields and credit spreads and other observable inputs. Government notes: The Company uses a third-party pricing service to value these investments. The pricing service utilizes quoted market prices in active markets for identical assets and reportable trades. Corporate bonds and notes: The Company uses a third-party pricing service to value these investments. The pricing service utilizes broker/dealer quotes, bids and offers, benchmark yields and credit spreads and other observable inputs. The Company’s accounting policy is to recognize transfers between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. There were no transfers into or out of Level 1 or Level 2 for the nine months ended September 30, 2016.

Restructuring Charges

Restructuring Charges	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities Disclosure [Text Block]	(5) Restructuring Charges On July 13, 2016, the board of directors of the Company approved a restructuring and reduction in force plan (the “2016 Restructuring Plan”). Under the 2016 Restructuring Plan, the Company reduced its workforce by eight positions, constituting 33 The reduction in workforce involved all functional disciplines including general and administrative employees, sales and marketing and research and development personnel. Further, subsequent to the Post Action meeting with the FDA for LPCN 1021, on October 28, 2016, the Company reduced its workforce by an additional two positions. The charge related to the 2016 Restructuring Plan during the three and nine months ended September 30, 2016 was $ 385,000 385,000 51,000 342,000 The Company will recognize the restructuring charge during the three months ended December 31, 2016.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	(6) Income Taxes The tax provision for interim periods is determined using an estimate of the Company’s effective tax rate for the full year adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter the Company updates its estimate of the annual effective tax rate, and if the estimated tax rate changes, the Company makes a cumulative adjustment. At September 30, 2016 and December 31, 2015, the Company had a full valuation allowance against its deferred tax assets, net of expected reversals of existing deferred tax liabilities, as it believes it is more likely than not that these benefits will not be realized.

Contractual Agreements

Contractual Agreements	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Collaborative Arrangement Disclosure [Text Block]	(7) Contractual Agreements (a) Abbott Products, Inc. On March 29, 2012 All obligations under the prior license agreement have been completed except that Lipocine will owe Abbott a perpetual 1% royalty on net sales. 1.0 50 (b) Contract Research and Development The Company has entered into agreements with various contract organizations that conduct preclinical, clinical, analytical and manufacturing development work on behalf of the Company as well as a number of independent contractors, primarily clinical researchers, who serve as advisors to the Company. The Company incurred expenses of $ 938,000 4.1 4.7 8.0

Leases

Leases	9 Months Ended
	Sep. 30, 2016
Leases [Abstract]
Leases of Lessee Disclosure [Text Block]	(8) Leases On August 6, 2004, the Company assumed a non-cancelable operating lease for office space and laboratory facilities in Salt Lake City, Utah. On May 6, 2014, the Company modified and extended the lease through February 28, 2018. Additionally, on December 28, 2015, the Company entered into an operating lease for office space in Lawrenceville, New Jersey through January 31, 2018. Operating leases Year ending December 31: 2016 95,138 2017 387,119 2018 58,903 Total minimum lease payments $ 541,160 The Company’s rent expense was $ 95,000 74,000 279,000 221,000

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2016
Stockholders Equity Note [Abstract]
Stockholders Equity Note Disclosure [Text Block]	(9) Stockholders’ Equity (a) Issuance of Common Stock On April 29, 2015, the Company sold 5,347,500 32.4 2.3 (b) Rights Agreement On November 13, 2015, the Company and American Stock Transfer & Trust Company, LLC, as Rights Agent, entered into a Rights Agreement. Also on November 12, 2015, the board of directors of the Company authorized and the Company declared a dividend of one preferred stock purchase right (each a “Right” and collectively, the “Rights”) for each outstanding share of common stock of the Company. The dividend was payable to stockholders of record as of the close of business on November 30, 2015 and entitles the registered holder to purchase from the Company one one-thousandth of a fully paid non-assessable share of Series A Junior Participating Preferred Stock of the Company at a price of $ 63.96 In general, in the event a person becomes an Acquiring Person, then each Right not owned by such Acquiring Person will entitle its holder to purchase from the Company, at the Right’s then current exercise price, in lieu of shares of Series A Junior Participating Preferred Stock, common stock of the Company with a market value of twice the Purchase Price. In addition, if after any person has become an Acquiring Person, (a) the Company is acquired in a merger or other business combination, or (b) 50% or more of the Company’s assets, or assets accounting for 50% or more of its earning power, are sold, leased, exchanged or otherwise transferred (in one or more transactions), proper provision shall be made so that each holder of a Right (other than the Acquiring Person, its affiliates and associates and certain transferees thereof, whose Rights became void) shall thereafter have the right to purchase from the acquiring corporation, for the Purchase Price, that number of shares of common stock of the acquiring corporation which at the time of such transaction would have a market value of twice the Purchase Price. The Company will be entitled to redeem the Rights at $ 0.001 November 12, 2018 (c) Share-Based Payments The Company recognizes stock-based compensation expense for grants of stock option awards, restricted stock units and restricted stock under the Company’s Incentive Plan to employees and nonemployee members of the Company’s board of directors based on the grant-date fair value of those awards. The grant-date fair value of an award is generally recognized as compensation expense over the award’s requisite service period. In addition, the Company grants stock options to nonemployee consultants from time to time in exchange for services performed for the Company. Equity instruments granted to nonemployees are subject to periodic revaluation over their vesting terms. During August 2016 and in conjunction with the 2016 Restructuring Plan (see note 5), the Company modified 61,487 51,000 The Company uses the Black-Scholes model to compute the estimated fair value of stock option awards. Using this model, fair value is calculated based on assumptions with respect to (i) expected volatility of the Company’s common stock price, (ii) the periods of time over which employees and members of the board of directors are expected to hold their options prior to exercise (expected term), (iii) expected dividend yield on the Common Stock, and (iv) risk-free interest rates. Stock-based compensation expense also includes an estimate, which is made at the time of grant, of the number of awards that are expected to be forfeited. This estimate is revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. 354,000 742,000 Three Months Ended Nine Months Ended 2016 2015 2016 2015 Research and development $ 147,769 $ 73,417 $ 477,068 $ 180,960 General and administrative $ 260,954 $ 280,646 $ 1,405,924 $ 560,882 Restructuring costs 51,266 - 51,266 - $ 459,989 $ 354,063 $ 1,934,258 $ 741,842 The Company issued zero and 83,000 602,000 271,500 Key assumptions used in the determination of the fair value of stock options granted are as follows: Expected Term Share-Based Payment, Risk-Free Interest Rate Expected Dividend Expected Volatility 2016 2015 Expected term 5.83 years 5.70 years Risk-free interest rate 1.68 % 1.66 % Expected dividend yield — — Expected volatility 82.33 % 80.95 % Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 718, Stock Compensation As of September 30, 2016, there was $ 4.0 2.0 8.29 6.32 (d) Stock Option Plan In April 2014, the board of directors adopted the 2014 Stock and Incentive Plan ("2014 Plan") subject to shareholder approval which was received in June 2014. The 2014 Plan provides for the granting of nonqualified and incentive stock options, stock appreciation rights, restricted stock units, restricted stock and dividend equivalents. An aggregate of 1,000,000 271,906 1,271,906 2,471,906 1,512,700 A summary of stock option activity is as follows: Outstanding stock options Number of Weighted average Balance at December 31, 2015 1,722,552 $ 5.21 Options granted 602,000 11.90 Options exercised (5,445) 6.29 Options forfeited (187,013) 11.74 Balance at September 30, 2016 2,132,094 6.52 Options exercisable at September 30, 2016 1,466,249 4.39 Options outstanding Options exercisable Number Weighted Weighted Aggregate intrinsic Number Weighted Weighted Aggregate 2,132,094 6.25 $ 6.52 $ 1,676,342 1,466,249 4.97 $ 4.39 $ 1,676,078 The intrinsic value for stock options is defined as the difference between the current market value and the exercise price. The total intrinsic value of stock options exercised during the nine months ended September 30, 2016 and 2015 was $ 22,000 658,000 5,445 98,574 (e) Restricted Common Stock Number of Balance at December 31, 2015 3,000 Granted - Vested (3,000) Cancelled - Balance at September 30, 2016 - (f) Warrants For charitable purposes, on December 23, 2003, the Company granted warrants to a local university for 20,467 12.21

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	(10) Commitments and Contingencies Litigation The Company is involved in various lawsuits, claims and other legal matters from time to time that arise in the ordinary course of conducting business. The Company records a liability when a particular contingency is probable and estimable. The Company has not accrued for any contingency at September 30, 2016 as the Company does not consider any contingency to be probable or estimable. The Company faces contingencies that are reasonably possible to occur; however, they cannot currently be estimated. While complete assurance cannot be given to the outcome of these proceedings, management does not currently believe that any of these matters, individually or in the aggregate, will have a material adverse effect on our financial condition, liquidity or results of operations. Guarantees and Indemnifications In the ordinary course of business, the Company enters into agreements, such as lease agreements, licensing agreements, clinical trial agreements, and certain services agreements, containing standard guarantee and / or indemnifications provisions. Additionally, the Company has indemnified its directors and officers to the maximum extent permitted under the laws of the State of Delaware.

Spriaso, LLC

Spriaso, LLC	9 Months Ended
	Sep. 30, 2016
Spriaso LLC [Abstract]
Spriaso LLC Disclosure [Text Block]	(11) Spriaso, LLC On July 23, 2013, the Company entered into an assignment/license and a services agreement with Spriaso, a related-party that is majority-owned by certain current and former directors of Lipocine Inc. and their affiliates. Under the license agreement, the Company assigned and transferred to Spriaso all of the Company’s rights, title and interest in its intellectual property to develop products for the cough and cold field. In addition, Spriaso received all rights and obligations under the Company’s product development agreement with a third-party. In exchange, the Company will receive a royalty of 20 10.0 Under the service agreement, the Company provided facilities and up to 10 percent of the services of certain employees to Spriaso for a period of 18 months 230 The Company received reimbursements of zero and $ 38,000 31,000 38,000 Consolidations

Accounting Pronouncements Not Y

Accounting Pronouncements Not Yet Adopted	9 Months Ended
	Sep. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	(12) Accounting Pronouncements Not Yet Adopted In August 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses In, March 2016, the FASB issued Accounting Standards Update 2016-09, Improvements to Employee Share-Based Payment Accounting Stock Compensation The standard becomes effective for the Company beginning in the first quarter of our fiscal year ended December 31, 2017 In February 2016, FASB issued ASU 2016-02 , Leases, which provides new guidance for lease accounting including recognizing most leases on-balance sheet. The standard becomes effective for annual and interim periods in fiscal years beginning after December 15, 2018. ASU 2016-02 mandates a modified retrospective transition method for all entities. The Company is currently evaluating the effect that ASU 2016-02 will have on our consolidated financial statements and related disclosures. In January 2016, FASB issued 016-01, Financial Instruments, Recognition and Measurement of Financial Assets and Financial Liabilities In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes In August 2014, FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) .

Earnings (Loss) per Share (Tabl

Earnings (Loss) per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	The following table sets forth the computation of basic and diluted earnings (loss) per share of common stock for the three and nine months ended September 30, 2016 and 2015: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Basic loss per share attributable to common stock: Numerator Net loss $ (3,235,485) $ (6,372,428) $ (16,005,040) $ (13,574,680) Denominator Weighted avg. common shares outstanding 18,252,681 18,238,632 18,252,092 15,871,252 Basic loss per share attributable to common stock $ (0.18) $ (0.35) $ (0.88) $ (0.86) Diluted loss per share attributable to common stock: Numerator Net loss $ (3,235,485) $ (6,372,428) $ (16,005,040) $ (13,574,680) Denominator Weighted avg. common shares outstanding 18,252,681 18,238,632 18,252,092 15,871,252 Diluted loss per share attributable to common stock $ (0.18) $ (0.35) $ (0.88) $ (0.86)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	The computation of diluted loss per share for the three and nine months ended September 30, 2016 and 2015 does not include the following stock options, unvested restricted stock, and warrants to purchase shares in the computation of diluted loss per share because these instruments were antidilutive: September 30, 2016 2015 Stock options 2,132,094 1,701,107 Unvested restricted stock - 4,000 Warrants - 20,467

Marketable Investment Securit19

Marketable Investment Securities (Tables)	9 Months Ended
	Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]
Available-for-sale Securities [Table Text Block]	The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value for available-for-sale securities by major security type and class of security at September 30, 2016 and December 31, 2015 were as follows: December 31, 2015 were as follows: September 30, 2016 Amortized Gross Gross Aggregate Government notes $ 7,313,575 $ 1,815 $ (398) $ 7,314,992 Corporate bonds and notes 16,818,756 1,003 (2,298) 16,817,461 $ 24,132,331 $ 2,818 $ (2,696) $ 24,132,453 December 31, 2015 Amortized Gross Gross Aggregate Government notes $ 802,862 $ - $ (750) $ 802,112 Corporate bonds and notes 24,005,458 594 (32,744) 23,973,308 $ 24,808,320 $ 594 $ (33,494) $ 24,775,420
Schedule Of Available For Sale Securities Debt Maturities [Table Text Block]	Maturities of debt securities classified as available-for-sale securities at September 30, 2016 are as follows: September 30, 2016 Amortized Aggregate Due within one year $ 24,132,331 $ 24,132,453

Fair Value (Tables)

Fair Value (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis [Table Text Block]	The following table presents the placement in the fair value hierarchy of assets and liabilities that are measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015: Fair value measurements at reporting date using September 30, Level 1 inputs Level 2 inputs Level 3 inputs Assets: Cash equivalents - money market funds and commercial paper $ 958,486 $ 158,782 $ 799,704 $ - Government notes 7,314,992 7,314,992 - - Corporate bonds and notes 16,817,461 - 16,817,461 - $ 25,090,939 $ 7,473,774 $ 17,617,165 $ - Fair value measurements at reporting date using December 31, Level 1 inputs Level 2 inputs Level 3 inputs Assets: Cash equivalents - money market funds $ 127,905 $ 127,905 $ - $ - Government notes 802,112 802,112 - - Corporate bonds and notes 23,973,308 - 23,973,308 - $ 24,903,325 $ 930,017 $ 23,973,308 $ -

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2016
Leases [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Future minimum lease payments under non-cancellable operating leases (with initial or remaining lease terms in excess of one year) as of September 30, 2016 are: Operating leases Year ending December 31: 2016 95,138 2017 387,119 2018 58,903 Total minimum lease payments $ 541,160

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Stockholders Equity Note [Abstract]
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]	Stock-based compensation cost that has been expensed in the statements of operations amounted to $460,000 and $ 354,000 742,000 Three Months Ended Nine Months Ended 2016 2015 2016 2015 Research and development $ 147,769 $ 73,417 $ 477,068 $ 180,960 General and administrative $ 260,954 $ 280,646 $ 1,405,924 $ 560,882 General and administrative 51,266 - 51,266 - $ 459,989 $ 354,063 $ 1,934,258 $ 741,842
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	For options granted during the nine months ended September 30, 2016 and 2015, the Company calculated the fair value of each option grant on the respective dates of grant using the following weighted average assumptions: 2016 2015 Expected term 5.83 years 5.70 years Risk-free interest rate 1.68 % 1.66 % Expected dividend yield — — Expected volatility 82.33 % 80.95 %
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Outstanding stock options Number of Weighted average Balance at December 31, 2015 1,722,552 $ 5.21 Options granted 602,000 11.90 Options exercised (5,445) 6.29 Options forfeited (187,013) 11.74 Balance at September 30, 2016 2,132,094 6.52 Options exercisable at September 30, 2016 1,466,249 4.39
Schedule of Share-based Compensation, Activity [Table Text Block]	The following table summarizes information about stock options outstanding and exercisable at September 30, 2016: Options outstanding Options exercisable Number Weighted Weighted Aggregate intrinsic Number Weighted Weighted Aggregate 2,132,094 6.25 $ 6.52 $ 1,676,342 1,466,249 4.97 $ 4.39 $ 1,676,078
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block]	A summary of restricted common stock activity is as follows: Number of Balance at December 31, 2015 3,000 Granted - Vested (3,000) Cancelled - Balance at September 30, 2016 -

Earnings (Loss) per Share (Deta

Earnings (Loss) per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Basic loss per share attributable to common stock: Numerator
Net loss	$ (3,235,485)	$ (6,372,428)	$ (16,005,040)	$ (13,574,680)
Denominator
Weighted avg. common shares outstanding	18,252,681	18,238,632	18,252,092	15,871,252
Basic loss per share attributable to common stock	$ (0.18)	$ (0.35)	$ (0.88)	$ (0.86)
Diluted loss per share attributable to common stock: Numerator
Net loss	$ (3,235,485)	$ (6,372,428)	$ (16,005,040)	$ (13,574,680)
Denominator
Weighted avg. common shares outstanding	18,252,681	18,238,632	18,252,092	15,871,252
Diluted loss per share attributable to common stock	$ (0.18)	$ (0.35)	$ (0.88)	$ (0.86)

Earnings (Loss) per Share (De24

Earnings (Loss) per Share (Details 1) - shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Unvested Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	4,000
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,132,094	1,701,107
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	20,467

Marketable Investment Securit25

Marketable Investment Securities (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 24,132,331	$ 24,808,320
Gross unrealized holding gains	2,818	594
Gross unrealized holding losses	(2,696)	(33,494)
Aggregate fair value	24,132,453	24,775,420
Government notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	7,313,575	802,862
Gross unrealized holding gains	1,815	0
Gross unrealized holding losses	(398)	(750)
Aggregate fair value	7,314,992	802,112
Corporate bonds and notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	16,818,756	24,005,458
Gross unrealized holding gains	1,003	594
Gross unrealized holding losses	(2,298)	(32,744)
Aggregate fair value	$ 16,817,461	$ 23,973,308

Marketable Investment Securit26

Marketable Investment Securities (Details 1)	Sep. 30, 2016USD ($)
Amortized Cost
Due within one year	$ 24,132,331
Aggregate fair value
Due within one year	$ 24,132,453

Marketable Investment Securit27

Marketable Investment Securities (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Proceeds from Sale and Maturity of Marketable Securities, Total	$ 11,600,000	$ 0	$ 19,700,000	$ 0

Fair Value (Details)

Fair Value (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Assets:
Available-for-sale Securities	$ 24,132,453	$ 24,775,420
Assets, Fair Value Disclosure	25,090,939	24,903,325
Government notes [Member]
Assets:
Available-for-sale Securities	7,314,992	802,112
Corporate bonds and notes [Member]
Assets:
Available-for-sale Securities	16,817,461	23,973,308
Fair Value, Inputs, Level 1 [Member]
Assets:
Assets, Fair Value Disclosure	7,473,774	930,017
Fair Value, Inputs, Level 1 [Member] | Government notes [Member]
Assets:
Available-for-sale Securities	7,314,992	802,112
Fair Value, Inputs, Level 1 [Member] | Corporate bonds and notes [Member]
Assets:
Available-for-sale Securities	0	0
Fair Value, Inputs, Level 2 [Member]
Assets:
Assets, Fair Value Disclosure	17,617,165	23,973,308
Fair Value, Inputs, Level 2 [Member] | Government notes [Member]
Assets:
Available-for-sale Securities	0	0
Fair Value, Inputs, Level 2 [Member] | Corporate bonds and notes [Member]
Assets:
Available-for-sale Securities	16,817,461	23,973,308
Fair Value, Inputs, Level 3 [Member]
Assets:
Assets, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member] | Government notes [Member]
Assets:
Available-for-sale Securities	0	0
Fair Value, Inputs, Level 3 [Member] | Corporate bonds and notes [Member]
Assets:
Available-for-sale Securities	0	0
Cash equivalents - money market funds [Member]
Assets:
Cash equivalents - money market funds	958,486	127,905
Cash equivalents - money market funds [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Cash equivalents - money market funds	158,782	127,905
Cash equivalents - money market funds [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Cash equivalents - money market funds	799,704	0
Cash equivalents - money market funds [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Cash equivalents - money market funds	$ 0	$ 0

Restructuring Charges (Details

Restructuring Charges (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Oct. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Restructuring Charges		$ 385,233	$ 0	$ 385,233	$ 0
2016 Restructuring Plan [Member]
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent		33.00%
Severance Costs		$ 385,000
Non Cash Cost Extend Exercise Period Vested Options		51,000		51,000
Payments for Restructuring	$ 342,000
Restructuring Charges		$ 385,000		$ 385,000

Collaborative Agreements (Detai

Collaborative Agreements (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Contract Research And Development [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Other Research and Development Expense	$ 938,000	$ 4,100,000	$ 4,700,000	$ 8,000,000
Abbott Products, Inc. [Member] | Collaborative Arrangement [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Collaborative Arrangement, Termination Date			Mar. 29, 2012
Collaborative Arrangement, Rights and Obligations			All obligations under the prior license agreement have been completed except that Lipocine will owe Abbott a perpetual 1% royalty on net sales.
Collaborative Arrangement, Royalties, Maximum Amount			$ 1,000,000
Collaborative Arrangement, Royalties, Percentage of Reduction			50.00%

Leases (Details)

Leases (Details)	Sep. 30, 2016USD ($)
Year ending December 31:
2,016	$ 95,138
2,017	387,119
2,018	58,903
Total minimum lease payments	$ 541,160

Leases (Details Textual)

Leases (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense	$ 95,000	$ 74,000	$ 279,000	$ 221,000

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	$ 459,989	$ 354,063	$ 1,934,258	$ 741,842
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	147,769	73,417	477,068	180,960
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	260,954	280,646	1,405,924	560,882
Restructuring costs [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	$ 51,266	$ 0	$ 51,266	$ 0

Stockholders' Equity (Details 1

Stockholders' Equity (Details 1)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	5 years 9 months 29 days	5 years 8 months 12 days
Risk-free interest rate	1.68%	1.66%
Expected dividend yield	0.00%	0.00%
Expected volatility	82.33%	80.95%

Stockholders' Equity (Details 2

Stockholders' Equity (Details 2) - Employee Stock Option [Member]	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Balance at beginning of the period (in shares) | shares	1,722,552
Number of Shares, Options granted (in shares) | shares	602,000
Number of Shares, Options exercised (in shares) | shares	(5,445)
Number of Shares, Options forfeited (in shares) | shares	(187,013)
Number of Shares, Balance at end of the period (in shares) | shares	2,132,094
Number of Shares, Options exercisable (in shares) | shares	1,466,249
Weighted average exercise price, Balance at beginning of the period (in dollars per share) | $ / shares	$ 5.21
Weighted average exercise price, Options granted (in dollars per share) | $ / shares	11.9
Weighted average exercise price, Options exercised (in dollars per share) | $ / shares	6.29
Weighted average exercise price, Options forfeited (in dollars per share) | $ / shares	11.74
Weighted average exercise price, Balance at end of the period (in dollars per share) | $ / shares	6.52
Weighted average exercise price, Options exercisable (in dollars per share) | $ / shares	$ 4.39

Stockholders' Equity (Details 3

Stockholders' Equity (Details 3) - Employee Stock Option [Member] - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options outstanding	2,132,094	1,722,552
Options outstanding, Weighted average remaining contractual life (Years)	6 years 3 months
Options outstanding, Weighted average exercise price (in dollars per share)	$ 6.52	$ 5.21
Options outstanding, Aggregate intrinsic value	$ 1,676,342
Number of options exerciseable	1,466,249
Options exercisable, Weighted average remaining contractual life (Years)	4 years 11 months 19 days
Options exercisable, Weighted average exercise price (in dollars per share)	$ 4.39
Options exercisable, Aggregate intrinsic value	$ 1,676,078

Stockholders' Equity (Details 4

Stockholders' Equity (Details 4) - Restricted Stock [Member]	9 Months Ended
	Sep. 30, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares, Balance at beginning of the period	3,000
Number of shares, Granted	0
Number of shares, Vested	(3,000)
Number of shares, Cancelled	0
Number of shares, Balance at end of the period	0

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Apr. 29, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Mar. 31, 2016	Nov. 13, 2015	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense		$ 459,989	$ 354,063	$ 1,934,258	$ 741,842
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total		$ 4,000,000		4,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value				$ 22,000	$ 658,000
Stock Issued During Period, Shares, New Issues		0	83,000	602,000	271,500
Proceeds from Issuance of Common Stock				$ 0	$ 32,439,313
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				2 years
Class of Warrant or Right, Exercise Price of Warrants or Rights							$ 63.96
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value				$ 8.29	$ 6.32
Class of Warrant or Right, Redemption Price of Warrants or Rights				$ 0.001
Class of Warrant or Right, Date from which Warrants or Rights Exercisable				Nov. 12, 2018
2016 Restructuring Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares		61,487
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options		$ 51,000		$ 51,000
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period				5,445	98,574
Stock Issued During Period, Shares, New Issues	5,347,500
Accredited Investors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from Issuance of Common Stock	$ 32,400,000
Payments of Stock Issuance Costs	$ 2,300,000
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights								$ 12.21
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number								20,467
2014 Equity Incentive Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		2,471,906	1,000,000	2,471,906	1,000,000	1,271,906
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		1,512,700		1,512,700
2011 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			271,906		271,906

Spriaso, LLC (Details Textual)

Spriaso, LLC (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 23, 2013	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Related Party Transaction [Line Items]
Percentage Of Fee To Be Received	20.00%
Maximum Proceeds From Affiliates Under License Agreement	$ 10,000,000
Description Of Terms Of Service Agreement				Under the service agreement, the Company provided facilities and up to 10 percent of the services of certain employees to Spriaso for a period of 18 months
Service Fee	$ 230
Reimbursement Revenue		$ 0	$ 38,000	$ 31,000	$ 38,000